Enforcing Legitimate Non-Solicitation and Restraint-Of-Trade Clauses in NSW
What steps have you taken to protect your customer and client relationships? Do you have enforceable non-solicitation clauses in your employee contracts?
Why does my contract have a restraint of trade clause?
The restraint of trade clause came about because many employers are worried that their employees will leave their business to work for a competitor, or start up a rival business and take their employees, clients and suppliers with them. A restraint clause is only effective once an employee leaves the business. An employer can enforce […]
Three Golden Rules For Restraints Of Trade
How can employers make restraints of trade enforceable? The court’s decision in the 2016 case set out below suggests that there are three golden rules to follow. In Just Group Ltd v Peck [2016] VSC 614, McDonald J held that a restraint of trade clause in a senior executive’s contract was void because it was […]
Restraint of trade clauses: Advice for employers and executives
In DP World Sydney Ltd v Guy [2016] NSWSC 1072, White J clarified a number of the principles that are used to determine whether a restraint of trade clause is enforceable. In so doing, he highlighted some important lessons for employers and executive employees. Facts DP World Sydney Ltd (‘DPW’) applied for an interlocutory injunction […]